Otley is in a strong position to get funding worth up to £1
million.
The town lost out on the first round of the Market Towns Initiative launched earlier this month.
But hopes are running high that the town is in a excellent position for the second round due to be announced in January or February next year.
On Monday at Otley Town Council's environmental and economic development sub committee meeting, David Gluck from the Countryside Agency urged the council to lobby the city council and also the town's MP Harold Best.
Mr Gluck said there were around 100 towns across Yorkshire and Humber suitable for the scheme but he would be picking just three from West Yorkshire.
The initiative, a joint project between the Countryside Agency and Yorkshire Forward, is already working with the first six towns chosen to launch the nationwide scheme.
Those picked receive £350,000 from the two agencies plus matched funding and grants worth £600,000 from other organisations.
Mr Gluck added the chosen towns benefited from advice and help as part of the project.
"I would suggest that you lobby your city councillors to impress upon Leeds City Council that Otley wants to be in on this initiative. If Leeds were not committed to working in Otley then it would be difficult for us, but clearly they are committed," said Mr Gluck.
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